THE RUMORED INAPPROPRIATE TEXT MESSAGES BETWEEN THE TWO HAPPENED IN WAYNE COUNTY. ALL RIGHT. THE CITY OF DETROIT IS BANKRUPT. THE ART AT THE DIA ARE POSSIBLE ASSETS TO SELLOFF TO SATISFY CREDITORS. THE QUESTION IS WHERE WILL THE MONEY FROM FOR THE $600 MILLION HOCKEY ARENA FOR THE RED WINGS. I GUESS I HAVE TWO QUESTIONS, IS IT REALLY IT COULD HAPPEN AND HOW DOES THE CITY PAY FOR IT IF THE CITY IS BROKE? THEY'RE GOOD QUESTIONS AND THE FIRST ONE IS YES, THERE WILL BE AN ARENA AND SECOND, IT'S BECAUSE WE'LL THINK OF LAWYERS AND LEGISLATORS AND PUBLIC-PRIVATE PARTNERSHIPS AND MUNICIPAL FINANCE AND ALL OF THAT STUFF THAT MAKES YOUR EYES ROLL BACK IN YOUR SKULL JUST THINKING ABOUT IT. THE ILICH ORGANIZATION PROMISES THE RED WINGS ARENA IS GOING TO BE STATE OF THE ART AND SPECTACULAR. THERE ARE NO RENDERINGS OF WHAT IT WILL LOOK LIKE EVEN THOUGH AN ARCHITECT HAS BEEN HIRED. HOW WILL WE PAY FOR IT? GEORGE JACKSON SAID IT BEST. NO FUNDS ARE BEING USED FROM THE GENERAL FUND. PROBABLY MOST OF THE FUNDING IS DEFINITELY NOT COMING FROM THE CITY, NOT EVEN THE DDA. THE DDA IS THE DOWNTOWN DEVELOPMENT AUTHORITY. IT'S A SEPARATE LEGAL ENTITY FROM THE CITY, WITHIN THE CITY. IT'S A SPECIAL BUSINESS PROMOTING TAX AUTHORITY THAT WILL OWN THE NEW RED WINGS STADIUM WHILE THE WINGS MAKE THE MONEY FROM CONCESSIONS AND TICKETS. BUILDINGS INSIDE THE DDA'S BOUNDARY PAY THEIR PROPERTY TAXES TO THE DDA, NOT THE CITY. AND THE DDA USES THE MONEY TO DEVELOP THE PROPERTIES WITHIN ITS BOUNDARY. IT'S BEEN AROUND FOR A GENERATION AND INTENDS TO USED 300 MILLION ALREADY COLLECTED. IT MAKES IT POSSIBLE TO PAY BACK BORROWED MONEY, BONDS, REALLY, OVER THE NEXT 30 YEARS. THE VAST MAJORITY OF THIS 45-BLOCK PROJECT IS GOING TO BE PAID FOR WITH PRIVATE MONEY, THE ILICH ORGANIZATION PUTTING UP MONEY ON ITS OWN. AND PRIVATE MONEY FOR 45% OF THE PROJECT. WE'RE CAREFUL NOT ADDING TO THE DEBT OF THE CITY THROUGH ITS GENERAL FUND WHICH A LOT OF PEOPLE DO WHEN THEY BUILD AN ARENA. NOW, THERE ARE A LOT OF MOVING PARTS TO THIS DEAL, AS YOU CAN WELL IMAGINE, AND ONE OF THOSE PARTS IS THAT THE PROJECT IS OUTSIDE SOME OF THE DDA BOUNDARIES, SO THEY'RE NOW GOING TO BE LOOKING FOR THE CITY COUNCIL TO GIVE THEM PERMISSION TO EXPAND THE DDA BOUNDARIES SO THEY CAN COLLECT THOSE TAXES FOR FUTURE DEVELOPMENT AND ALSO, THEY HAVE TO GET THE CITY COUNCIL TO APPROVE ALL OF THIS DEAL. THAT COMES A WEEK FROM TODAY. BACK TO YOU. ALL RIGHT, SEEING THAT BIG JOE LOUIS ARENA SIGN BEHIND YOU MAKES YOU THINK OF ANOTHER QUESTION, WHEN THE ARENA HAPPENS, WHAT HAPPENS TO JOE LOUIS ARENA? OH, IT DISAPPEARS, STEVE. THAT'S THE IDEA. THE STATE HAS GIVEN VERBAL AGREEMENT TO KNOCK DOWN JOE LOUIS ARENA FOR THE CITY, MAKE THE LAND CLEAR, GIVE THEM ANOTHER PLACE THAT THEY CAN DEVELOP, AN AQUARIUM MAYBE, ANOTHER BUSINESS DEVELOPMENT OF SOME KIND, APARTMENTS, WHO KNOWS WHAT THEY'LL DO WITH IT, BUT IT WILL BECOME SALEABLE LAND IN ABOUT 2017.

DETROIT -

The City of Detroit is bankrupt, the art on the walls of the DIA are being eyed as possible assets to sell off to satisfy creditors and help fund pensions.

The proposed arena slated to be built on vacant land along Woodward near Comerica Park got a big boost Friday by clearing the first hurdle.

Think lawyers and legislators and public private entities and specialized municipal finance, and your eyes glaze over in your head, but it is the only way to explain how a bankruptcy city can magically afford a new hockey arena.

The Ilitch organization promises the new Red Wings arena will be innovative, state of the art and spectacular. There are no renderings of what it will look like even though an architect has been hired.

But the better question is how are we paying for this?

"No funds are being used from the general fund. Most of the money is not even coming from the city, not even the DDA," said nonprofit Detroit Economic Growth Corporation President George Jackson.

The DDA is the Downtown Development Authority. It is a separate legal entity from the city, a special business promoting tax authority that will own the new Red Wings stadium while the Wings make all the money from the concessions and tickets.

Buildings inside the DDA's boundaries pay their property taxes to the DDA, not the city.

The DDA then reuses that money to develop the properties within its boundaries. It's been around for a generation and it intends to use nearly $300 million already collected.

It makes it possible to pay back borrowed money-bonds really over the next 30 years.

The vast majority of this 45 block project will be paid for with private money, the Ilitch organization putting up $200 million. Public money will account for about 45 percent of the project.

"I think the key thing here is more growth, that we're not adding to the city's debt, which is what a lot of cities do when they build stadiums," said Jackson.

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